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Qwest Posts Largest Quarterly Loss In Colorado History
Telecommunications Giant Is State's Largest Private Employer
DENVER -- Qwest Communications International has reported a $3.3 billion quarterly loss - the largest in Colorado history - as it accounted for the plummeting value of its stake in a European telecommunications venture.
The massive second-quarter loss has no bearing on the company's operations, but reflects the swiftly declining value of its fiber-optic telecommunications assets. Qwest stock fell $1.50 to a 52-week low of $27.05.
The loss, reported Tuesday, included a $3.1 billion write-down of Qwest's partial ownership of KPNQwest, as well as $415 million in charges from its 2000 merger with US West. Without the charges, Qwest would have logged net income of $128 million for the quarter.
Qwest's quarterly loss is so big that it dwarfs the market value of most Colorado companies. Only eight companies based in the state have values that exceed Qwest's net loss for the quarter. Denver-based Qwest has the largest market value of any Colorado company, $44.9 billion, and it is the state's largest private employer.
Qwest is among numerous telecommunications companies that have taken massive write-downs on the value of their assets and staggering losses amid an economic downturn.
In detailing Qwest's performance for Wall Street analysts, Qwest executives predicted the company will meet its financial projections for this year and achieve the low end of its five-year projections.
They also said Qwest will spend less than originally planned next year as it completes most of its financial push to improve customer service and prepare for re-entry into the long-distance business in US West's 14-state territory.
The massive second-quarter loss has no bearing on the company's operations, but reflects the swiftly declining value of its fiber-optic telecommunications assets. Qwest stock fell $1.50 to a 52-week low of $27.05.
The loss, reported Tuesday, included a $3.1 billion write-down of Qwest's partial ownership of KPNQwest, as well as $415 million in charges from its 2000 merger with US West. Without the charges, Qwest would have logged net income of $128 million for the quarter.
Qwest's quarterly loss is so big that it dwarfs the market value of most Colorado companies. Only eight companies based in the state have values that exceed Qwest's net loss for the quarter. Denver-based Qwest has the largest market value of any Colorado company, $44.9 billion, and it is the state's largest private employer.
Qwest is among numerous telecommunications companies that have taken massive write-downs on the value of their assets and staggering losses amid an economic downturn.
In detailing Qwest's performance for Wall Street analysts, Qwest executives predicted the company will meet its financial projections for this year and achieve the low end of its five-year projections.
They also said Qwest will spend less than originally planned next year as it completes most of its financial push to improve customer service and prepare for re-entry into the long-distance business in US West's 14-state territory.
Previous Stories:
- June 1, 2001: Is Qwest Selling Your Number To Telemarketers?
- May 22, 2001: Qwest Expanding DSL Service
- May 14, 2001: Qwest Raising Pay Phone Rates Again
- May 11, 2001: Qwest Getting Back Into Long Distance
- May 2, 2001: Qwest Ordered To Refund $11.2 Million
- March 7, 2001: US West Retirees Fighting Qwest Use Of Pension Surplus
- March 1, 2001: Qwest Raising Rates On 411 Information Calls
Copyright 2002 by TheDenverChannel.com. The Associated Press contributed to this report. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
